Rock Adventures has 15 employees each working 40 hours per week and earning $30 an hour. Federal income taxes are withheld at 15%

Rock Adventures has 15 employees each working 40 hours per week and earning $30 an hour. Federal income taxes are withheld at 15% and state income taxes at 6%. FICA taxes are 7.65% and unemployment taxes are 3.8% of the first $7,000 earned per employee. What is the employer's total payroll tax expense for the first week of January?

A) $1,377.

B) $3,141.

C) $2,061.

D) $684.

Answer: C

Rock Adventures has 15 employees each working 40 hours per week and earning $30 an hour. Federal income taxes are withheld at 15% and state income taxes at 6%. FICA taxes are 7.65% and unemployment taxes are 3.8% of the first $7,000 earned per employee. What is the actual payroll payment (salaries payable) for the first week of January?

A) $13,923.

B) $12,843.

C) $5,157.

D) $18,000.

Answer: B

Action Travel has 10 employees each working 40 hours per week and earning $20 an hour. Federal income taxes are withheld at 15% and state income taxes at 6%. FICA taxes are 7.65% and unemployment taxes are 3.8% of the first $7,000 earned per employee. What is the employer's total payroll tax expense for the first week of January?

A) $612.

B) $1,224.

C) $916.

D) $304.

Answer: C

Greger Peterson is a senior manager at a public accounting firm making a base salary of $180,000 a year ($15,000 per month)

Greger Peterson is a senior manager at a public accounting firm making a base salary of $180,000 a year ($15,000 per month). Employers are required to withhold a 6.2% Social Security tax up to a maximum base amount and a 1.45% Medicare tax with no maximum. Assuming the Social Security maximum base amount is $128,400, through what month will Social Security be withheld?

A) Social Security will be withheld through the month of September.

B) Social Security will be withheld through the entire year.

C) Social Security will be withheld through the month of January.

D) Social Security will be withheld through the month of October.

Answer: A

Greger Peterson is a senior manager at a public accounting firm making a base salary of $180,000 a year ($15,000 per month). Employers are required to withhold a 6.2% Social Security tax up to a maximum base amount and a 1.45% Medicare tax with no maximum. Assuming the Social Security maximum base amount is $128,400, how much will be withheld during the year for Peterson's Social Security and Medicare taxes. (Round your answers to the nearest dollar amount.)

A) $2,610.

B) $10,571.

C) $13,770.

D) None of the other answer choices are correct.

Answer: B

Action Travel has 10 employees each working 40 hours per week and earning $20 an hour. Federal income taxes are withheld at 15% and state income taxes at 6%. FICA taxes are 7.65% and unemployment taxes are 3.8% of the first $7,000 earned per employee. What is the actual payroll payment (Salaries Payable) for the first week of January?

A) $5,404.

B) $5,708.

C) $4,792.

D) $8,000.

Answer: B